Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $1,094,600
Shop direct labor 799,000
Shop and repair equipment depreciation 47,300
Shop supervisor salaries 131,400
Shop property taxes 23,900
Shop supplies 18,300
Advertising expense 21,900
Administrative office salaries 94,100
Administrative office depreciation expense 12,000
Total costs and expenses $2,242,500

The average shop direct labor rate is $17.00 per hour.

Required:
Determine the predetermined shop overhead rate per direct labor hour.

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%